Advice on winning R.E offer against investors

Advice on winning R.E offer against investors

Lancaster, CA · Member since 2015 · 15 posts · 4 votes

Hello BP pals,

I am trying to purchase a home for my family and and will be sharing with my parents. Because we need a little bit more bigger lot than average, I often find myself competing with Real Estate Investors in my area. I noticed a pattern that includes investors waving inspection, other contingencies and offering at 7 day closing. It seems sellers are willing to bring the price down sometimes because it's more appealing to have a shorter closing time and no contingencies. I am just trying to purchase a home for ny family , so of course I would like to do an inspection and the traditional 21 day closing. Although the bidding price is pretty competitive, I often loose the offer because of a contingencies. Aside from doing my own inspection when permitted by the seller and gambling that money on a property. Anybody has any suggestions? I'm also considering foreclosures however, all Realtors that I has spoken to so far, are not inclined to help me with this and or don't have experience. It seems that the easier route is to go with MLS for sale listings and to settle with a smaller lot. Because I know that we will need a lot of 10,000sqf or larger I need to keep those parameters. So far I have found four properties but competing against investors is not easy thus far. Thanks!

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  • Varinder KumarPro Member
    Real Estate Broker · LA & ORANGE COUNTY CA -Multi Family · Member since 2016 · 374 posts · 132 votes
    1y

    I just sent you a DM

  • Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    1y

    There's a lot you can do but I have a few questions (I have beaten out cash offers multiple times):

    1. Are these houses major fixers? Have you considered something more move in ready to not have to compete with other investors?

    2. I work with a lender that can close in 17 days. You just have to give him everything up front (which is better anyways). Are you working with a mortgage broker or a direct lender? Direct lender is always better. Especially over the last 12-24 months, I've been seeing mortgage brokers dropping the ball 100% of the time (which has resulted in either expensive delays or cancellations).

    3. Are you looking at homes that just hit the market or have been sitting?  Aged listings are low hanging fruit.

    4. The biggest question: Are you willing to pay more than a cash investor? If so, how much more? Keep in mind if you are offering the same, or even slightly higher, the risk for the Seller is dramatically lowered when they go with a cash buyer.

    5. Why do you need the bigger lot? What areas are you looking? Have you considered other areas? For example Thousand Oaks has plenty of large lot homes. But it also depends on your budget.

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